Arshiya Limited Approves Unaudited Standalone Financial Results for Quarter Ended June 30, 2025, During CIRP

Arshiya Limited Approves Unaudited Standalone Financial Results for Quarter Ended June 30, 2025, During CIRP​

Arshiya Limited is undergoing a Corporate Insolvency Resolution Process (CIRP), during which Resolution Professional (RP) Mr. Pankaj Mahajan has considered, approved, and taken on record the Unaudited Standalone Financial Results for the quarter ending June 30, 2025.

The Company confirmed that, due to constraints imposed by CIRP on several subsidiary companies, consolidated financial results could not be prepared for the quarter ended June 30, 2025. Instead, the filing includes the Unaudited Standalone Financial Results and a Limited Review Report issued by the Statutory Auditor, M/s ARTHA & Associates.

Financial Performance Overview​

The standalone financial results for the quarter ending June 30, 2025, show a Total Income of 456.75 (Rs. in Lakhs). The Total Expenses for the period stood at 419.97 (Rs. in Lakhs), resulting in a Net profit/(Loss) after Tax of 36.78 (Rs. in Lakhs). The total comprehensive income recorded for the period was also 36.78 (Rs. in Lakhs).

The financial results for the quarter ended June 30, 2025, and comparable periods are detailed below:

Operational and Accounting Highlights​

The Limited Review Report by the Statutory Auditor noted several complexities impacting the current financial statement period. Key observations include:

• Going Concern Status: The financial statements were prepared on a going concern basis, as the Company's affairs are presently being managed by the Resolution Professional as directed under the Insolvency and Bankruptcy Code.
• Asset Valuation Constraints: The review noted that the RP initiated a valuation exercise for Property, Plant & Equipment (gross block aggregating to Rs. 56,971.87 lakhs) and inventory (Rs. 16,505.97 lakhs). However, since the valuation reports are confidential pending the approval of a Resolution Plan, the Company was constrained from performing an appropriate impairment assessment.
• Sub-Lease Termination: The review highlighted the termination of sub-lease agreements for several warehouses from Ascendas Panvel FTWZ Limited and Anomalous Infra Private Limited due to an 'Event of Default.'
• Manpower and Operational Disruption: The auditor noted significant operational disruption, including the mass resignation of 50 out of 71 employees between July 30 and August 2, 2024, alongside the subsequent resignation of key accounting personnel. These events caused acute manpower deficiency and delays in account finalization.
• Debt and Guarantee Issues: The Company provided a corporate guarantee to lenders of a subsidiary, Arshiya Northern FTWZ Limited. The auditor noted that the claim arising from this guarantee was reclassified by the National Company Law Tribunal into a secured financial debt.

The review report advised that the determination of many financial values, including impairment assessments, is dependent on the outcome of the ongoing CIRP process, making it difficult to determine the final impact on the financial statements.

ARSHIYA Stock Price Movement​

Arshiya Limited shares edged higher on Friday, concluding the session at ₹1.18, marking a notable gain of 0.85%. The equity saw solid interest, with the stock trading a total volume of 46,430 shares during the day.